Business Insurance in Ontario

There is no single law that requires every Ontario business to carry commercial insurance the way auto insurance is required for drivers. That said, several requirements make coverage effectively necessary for most businesses:

• WSIB coverage is compulsory for most Ontario employers with employees, including construction businesses regardless of size. Sole proprietors with no employees are often exempt but can register voluntarily.
• Commercial auto insurance is legally required for any vehicle registered to and used by a business, the same way personal auto insurance is required for private vehicles.
• Landlords, lenders and clients frequently require proof of liability insurance, usually through a certificate of insurance, before signing a lease, contract or service agreement.
• Regulated professions (accountants, real estate professionals, engineers, and others) are often required by their governing body to carry professional liability or E&O coverage as a condition of licensing.

In practice, most Ontario businesses end up needing some form of commercial insurance either by law, by contract, or simply to protect against a loss the business couldn't otherwise absorb.

Business insurance in Ontario is a range of commercial insurance coverages designed to help protect a business against financial losses caused by risks such as lawsuits, property damage, theft, cyber incidents and business interruption. Common types of coverage include Commercial General Liability (CGL), commercial property insurance and business interruption insurance.

However, the right combination of coverage depends on the size, industry, operations and specific risks of each business.

Business insurance can protect a company from significant financial impacts, but the level of protection depends on the policy terms, coverage limits, exclusions and the specific cause of the loss. Not every incident or expense is automatically covered, which is why choosing the right coverage for the business's actual risks is important.

Business interruption insurance is the more accurate term when discussing protection for lost income after a covered event. This coverage can help replace lost business income and/or cover certain ongoing expenses when a business is unable to operate due to an insured loss, subject to the terms and conditions of the policy.

There's no flat rate for business insurance because pricing is built around the specific risk a business represents.

• Industry and operations: a desk-based consultancy and a construction contractor sit at very different risk levels
• Revenue and payroll: larger operations generally carry higher premiums
• Claims history: prior claims can raise premiums or limit which insurers will quote
• Coverage limits and deductibles chosen: higher limits and lower deductibles cost more
• Location and property type: building age, construction and location affect property premiums
• Number of employees: relevant to both liability exposure and WSIB obligations

Because these factors vary so much between businesses, the most reliable way to know what a policy will cost is to get a quote based on the specific business rather than relying on an industry average.

BrokerUnion is RIBO-licensed and an IBAO member, with access to multiple insurance markets and carriers across commercial and specialty lines.

A few things that shape how we work with Ontario businesses:

• Broad carrier access: compare coverage and pricing across multiple markets
• Multilingual service: brokers available in multiple languages, useful for owners who prefer discussing coverage in another language
• Local presence: Ontario offices supporting businesses across different communities
• Independent advice: as a brokerage rather than a single insurer, recommendations are based on business needs
• Established client relationships: supporting Ontario businesses with professional insurance guidance

If you already have coverage, our team can also review an existing policy to check whether the limits, deductibles and exclusions still match how the business currently operates.

BrokerUnion arranges business insurance for companies across Ontario.

Coverage itself is provincial. A business doesn't need to be based near one of these offices to get a quote, but local offices give business owners access to broker support.